Business.govt.nz

Matchmaking investors to your business

Want money to grow your business, but too small – or too soon – for the stock exchange? Crowdfunding is one option, as is the new NXT market, aimed at matching smaller businesses with investors.

NXT, which launched in June, is an offshoot of the New Zealand Stock Exchange with simpler listing rules and a new approach to disclosure.

NXT has been set up in response to recommendations from the Capital Markets Taskforce, which noted that New Zealand has limited capital-raising opportunities for the smaller businesses that make up the bulk of its economy.

For a number of businesses, crowdfunding may be a more suitable option.

Crowdfunding works by many people putting small amounts of money towards a company or project. It’s an approach popular with start-ups and early-stage businesses.

New crowdfunding rules make it quicker and easier for small companies to raise money. Instead of the detailed documents companies usually have to publish when raising money from the public, they only have to provide basic information on a crowdfunding service website.

Companies seeking investors also have to meet certain FMA requirements, such as raising no more than $2 million from the public in any 12-month period. And if you’re thinking of investing, check out the FMA’s tips for crowdfunders (external link).